SURVEY OF FORECLOSURE 
OPERATIONS 


HORACE RUSSELL 

General Counsel 

Home Owners’ Loan Corporation 


I * 


Prepared by 

HENRY BEAMAN, Senior Attorney 
under Direction of 

LUKE E. KEELEY, Associate General Counsel 

HEBER H. RICE, Head Attorney 
Foreclosure Section 














.llsb 

HS1 



CONTENTS 


LETTER OF TRANSMITTAL 
HISTORY 
COMPARISONS 
SUMMARY 
COST GRAPH 


STATE BREAKDOWN 










library of congress 

DEC 2 8 193/ 

DIVISION OF DOCUMENTS 






Home Owners’ Loan Corporation 

Washington, D. C. 


August 27, 1937 

Mr. Luke E. Keeley, Associate General Counsel 
Home Owners’ Loan Corporation 
Federal Home Loan Bank Board Building 
Washington, D. C. 

Dear Mr. Keeley: Re: Foreclosure Operations and Cost of 

Home Owners’ Loan Corporation 

On or about July 15 you instructed me to make a survey of the Corporation’s foreclosure activities 
throughout the United States, so a careful analysis could be made of costs of every character and the actual 
time to complete a foreclosure could be ascertained. Cost sheets were printed and a letter for the joint 
signatures of the General Manager and General Counsel was prepared. This letter was sent to the field 
on the 30th day of July, requesting the regions to furnish the data required on the cost sheets, in accordance 
with instructions contained in the letter, on 100 cases picked at random by this office in each state where 
that many cases could be obtained and on a lesser number in the other states. 

I submit herewith the result of that survey, along with a brief history of the foreclosure operations of 
the Corporation from the authorization of the first case for foreclosure up to and including the date of this 
letter. 

Based on the figures furnished by the field, Mr. Rice, Head Attorney in charge Foreclosure Section 
submits the following averages: 

Average attorney fee in foreclosure cases, $72.94; additional costs, $88.32; total, $161.25. Average 
voluntary deed fee, $18.65; costs, $6.89; total, $25.54. Average fee for both foreclosure and voluntary 
deed cases, $62.82; costs, $75.63; total, $138.45. Applying the last three figures to 105,986 cases dispatched 
through July 31, 1937, (15 % of which are treated as being salaried attorney cases with no attorney fee, 

8/4}% withdrawn cases without fee or cost to the Corporation, and 14 2 /i% as being voluntary deeds) the 
attorney’s fees will amount to $5,036,729.40; additional costs, $7,348,029.38; total, $12,483,758.78. This 
discloses an ultimate attorney fee disbursement of $47-90 on each dispatched foreclosure case, an additional 
cost of $69.73, and a total of $117.23. 

In concluding, I want to call your attention to the valuable assistance of Mr. George E. Gibson, of the 
Legal Staff, in digesting the method of foreclosure of the 48 states and the District of Columbia; and also 
to the valuable assistance of Mr. Ralph W. Weese, and Mr. C. J. Lester, of the staff of the Division of 
Research and Statistics, in compiling the figures and furnishing advice on financial and statistical data. 

Respectfully submitted, 



Foreclosure Section 



HOME OWNERS’ LOAN CORPORATION 


Lending 

Operations 


Character 
of Loans 


First 

Foreclosures 


Fee 

Schedule 


FORECLOSURE OPERATIONS 


* * * 

An Act of Congress, dated June 13,1933, Public Act No. 43, 73rd Congress and known 
as the Home Owners’ Loan Act, as amended, set in motion the most stupendous refinancing 
operation ever known in the world—the refinancing on a national scale of real estate 
loans of distressed borrowers who had lost their homes through foreclosure or were in 
danger of losing them, and the refinancing of such loans held by closed lending institutions. 

At the close of lending operations on June 12, 1936, this Corporation had refinanced 
1,018,171 loans, amounting to $3,093,288,213. The average loan was for $3,028. The 
total loaned was based on an appraisal of $4,476,538,658. 1,886,491 applications had 

been received requesting this Corporation to refinance $6,173,355,652. 868,320 ap¬ 

plications were either withdrawn or rejected. 

As a comparison, the last tabulation on original loans on properties authorized for 
foreclosure reveals their average was $3,875., and their average appraisal was $5,201., 
considerably higher than the average refinancing. 

As practically all loans, with the exception of those made to borrowers whose mortgages 
were held by closed lending institutions, were to people who were financially distressed 
and with no immediate source of permanent income, it was to be expected that a large 
number of foreclosures would result. 

The first foreclosure was authorized on March 7, 1934, on Loan No. 5-C-43 (name 
deleted) for $2,270. on a piece of property in Pueblo, Colorado. The reason was “property 
abandoned, borrower deceased, and heirs unwilling to assume the mortgage.’’ The 
next loan foreclosed was No. 28-G-79 (name deleted) on an original loan of $14,000., 
upon which was an unpaid balance of $15,039.54; the borrower was totally delinquent 
and would make no effort to cooperate with this Corporation. 

As foreclosures began to grow in number, highly efficient methods became necessary 
to handle and keep in touch with this operation. By special order of January 10, 1935, 
the General Counsel directed the Associate General Counsel in Charge of Litigation 
Division to create immediately, under his direction and supervision, a section to be known 
as the Foreclosure Section. A Head Attorney was placed in charge. 

Special attorneys were assigned on a fee basis to handle the foreclosures in their respec¬ 
tive localities, upon recommendation of State Counsel subject to subsequent approval 
of Regional and General Counsel. 

A fee schedule was worked out for each state, commensurate with the duties performed 
and the volume of work each attorney would handle. This was under the supervision 
of the Attorney in Charge of the Foreclosure Section, by direction of the General Counsel 
and Associate General Counsel in Charge of the Litigation Division. In arranging fee 


2 



Delegation 
of Authority 


Instructions 
to the Field 


Mechanical 

Tabulating 

Machines 


Cost of 
Home Office 
Supervision 


Reasons For 
Foreclosure 


schedules and in guarding against excessive fees, it has been estimated in Illinois alone, 
for instance, that the Corporation, by adopting the present fee instead of that originally 
urged by local attorneys, will have saved approximately $1,500,000., if present cases 
authorized for foreclosure are completed. 

As the number of foreclosure approvals to be signed each day by the Associate General 
Counsel reached large proportions in August, 1935, the authority to approve foreclosures 
was delegated to the Regional Manager and Regional Counsel of each of the eleven regions 
into which the operations of the Corporation are divided. 

Another important function was the issuance to the field of the series of general in' 
structions from time to time setting up procedure for efficient foreclosure operation and 
economical expenditures. 

In March, 1936, the Associate General Counsel, to keep down expenses and preserve 
efficiency, began a campaign to “weed out” duplication and eliminate unnecessary effort 
and work. All foreclosure cases, pending or closed, were coded on cards used on me' 
chanical tabulating machines, such as are used for statistical data in the Census Bureau 
and other large governmental departments. This coding work, done under the direction 
of the Division of Research and Statistics, has enabled the Legal Department to tabulate 
instantly data in regard to the many ramifications of foreclosure work on any particular 
case or group of cases by counties and states on any possible known breakdown throughout 
the United States. It is possible to ascertain quickly the number of properties acquired 
in fee absolute through foreclosure or by deed in lieu of foreclosure; the number of prop' 
erties upon which the period of redemption is running and its date of expiration; the 
number of cases suspended pending liquidation of delinquencies; the number of cases 
where borrowers have liquidated delinquencies and their accounts reinstated as active 
loans; the number of cases pending and upon which foreclosure by court action or by 
advertisement under Power of Sale has been instituted, the individual cases, and their 
locations; the number of months borrowers were delinquent at the time foreclosure was 
authorized; and the original loan amount and reason for foreclosure. 

In March, 1936, the cost per case per month was 60c. The total number of employees 
numbered 16. There were 5,033 undisposed cases, with an office “spread” of 315 cases 
per person per month. 

In April, 1937, the number of employees was 25, and the number of undisposed cases 
49,385, with an office “spread” of 1,975 cases per person per month. The cost per case 
per month was 10c. The average increase in personnel from March, 1936, to April, 1937, 
was 56.3%. The volume of work per person had increased 526.9% and the average cost 
per active case per month was 20c with a total cost per case for 12 months preceding April, 
1937, of $1.56. With modern methods and constant vigilance, the foreclosure operation 
has been one of the most efficient, as well as the most economical, of any lending institution 
in the world. 

In view of the character of the loans made, the percentage of foreclosures by the Corpo' 
ration has been exceedingly low. Tabulations by percentages on delinquencies preceding 
foreclosure action follow: 3 months or less, 1/10%; 4 to 6 months, 1.6%; 7 to 12 months, 

10.9%; 13 to 18 months, 26.4%; 19 to 24 months, 39.8%; 25 months and over, 20.6%; 


3 


Corporate 
Policy as to 
Foreclosure 


Time of 
Acquisition 
of Fee 


Information 

For 

Management 


Contested 

Cases 


Fee 

Foreclosure 

Attorneys 


period not reported, 0.3%. Reasons for foreclosure as last tabulated were: “property 
abandoned or virtually so,” 18.5%; “nomcooperative borrower,” 54.2%; “obstinate re' 
fusal to pay,” 21.5%; “death of borrower,” 5.5%; and, “legal complications,” 0.3%. 

These figures show that the Corporation has made every effort to carry out the letter and 
intent of the Act of June 13, 1933; and it is only when every effort to rehabilitate the 
borrower has failed that the Corporation has authorized foreclosure. Once authorized and 
dispatched to the field for action, it is incumbent upon the Legal Department to complete 
the foreclosure as speedily as possible, and to see that a merchantable and marketable title 
is vested in the Corporation, so that the property may be properly offered for sale or lease. 

By coding the cases on mechanical tabulating machines, and with the cooperation of the 
Division of Research and Statistics, resulting in a Home Office central control, each case is 
followed to its conclusion and undue delay on the part of salaried or fee attorneys eliminated. 
In one state, the average time of acquiring title was approximately 50% less than that 
required by a large and prominent private lending institution. As long as the property 
is lying fallow, no repairs can be made, nor can it be put on the market for rental or sale. 
Each day saved in the acquisition of title is a monetary saving to the lending institution. 

The Foreclosure Section is able to project accurately monthly acquisitions of properties 
in the various states. As a result, the Management is in a position to instruct its Ap' . 
praisal, Reconditioning, Servicing, and Property Management Departments, Divisions, 
and Sections in advance to prepare for the appraisals, reconditioning, and the placing of 
these properties in the hands of brokers for rental or sale, and to be ready with personnel 
to function properly. This service has saved the Corporation a huge amount of money 
because it knows at all times when to expect reconditioning to begin and when to employ 
new personnel. 

In April, 1936, the volume of contested foreclosure cases had grown to a point where it 
became necessary to establish a Contested Case Unit, separate and apart from the Uncon' 
tested Case Unit, with a Senior Attorney at the head of each. Among the first issues 
raised in contested cases were the constitutionality of the Home Owners’ Loan Act, and 
whether the Corporation was legally constituted. In many cases, the question of the 
necessity of the Corporation’s complying with local domestication laws was raised, but it 
has been consistently held that this Corporation is not a foreign corporation within any 
state and, therefore, need not comply with registration or domestication acts. Innumerable 
other questions and, of course, the usual number of dilatory defenses have appeared in the 
Corporation’s foreclosure actions. By July 31, 1937, the Corporation had acquired in fee 
absolute 49,136 properties, and not one acquisition had been defeated by contest. 

From a peak of 4,021, the number of fee foreclosure attorneys had decreased to 3,784 by 
death, resignation, or for other reasons by July 31, 1937. The selection of these fee 
attorneys was a tremendous and painstaking task, their qualifications being at least three 
years’ admission and active practice before the bars of the states in which they were to 
represent the Corporation. They were required to list at least five clients for whom they 
had rendered services. Three law firms or lawyers of good standing in the community in 
which each attorney in question practiced were questioned concerning him, and a character 
report also procured. Every possible method was used to obtain the services of honest and 
efficient practitioners. The record shows this effort was eminently successful. 


4 


Supervision 
of THE 
Field 

Daily 

Reports 


Statistical 
Data as of 
July 31, 1937 


Under the Attorney in Charge, supported by his staff, the supervisory functions of the 
Foreclosure Section include those of expediting the smooth handling of all foreclosure cases, 
discussing by correspondence the important issues and questions with the field, and seeing 
that retarded or delayed cases are given special attention. 

In July, 1936, it was [decided a daily report should be made of foreclosure activities for 
the use of departmental heads, both managerial and legal. This is a running inventory and 
shows the cumulative and daily totals of foreclosures dispatched to State Counsel for action, 
action instituted, cases in contest, cases on which the period of redemption is running, 
properties acquired in fee absolute by foreclosure sale or by deed in lieu of foreclosure, 
properties sold to third parties at public sale, properties redeemed by borrower, cases in 
suspense, cases withdrawn, and pending cases.| 

The Corporation, on July 31, 1937, had dispatched to State Counsel 105,986 cases for 
foreclosure. The Corporation had acquired in fee absolute 49,136 properties. There 
were 21,790 properties upon which the period of redemption had not expired. In 6,270 
cases, borrowers paid up their delinquencies and their cases were withdrawn. In 101 
cases, the properties were sold at foreclosure sale to third parties; 3,356 cases were in sus* 
pense pending the completion of liquidation programs proposed by the borrowers. There 
were pending 25,050 cases, excluding those awaiting expiration of redemption period. 

The foregoing is a brief summary of the foreclosure operations of the Legal Department 
of the Home Owners’ Loan Corporation. There are definite indications that the greater 
part of these operations has been completed. (With the return of definitely improved 
economic conditions and with the elimination of the majority of the hopeless cases through 
foreclosure and with monthly collections constantly exceeding monthly billings, the rate 
of foreclosures has decreased more than fifty per cent since the summer of 1936, when the 
peak load [was reached. The evidence seems unmistakable that the rate will still more 
substantially decline during the coming months. 

* * * 


5 


COMPARISON OF COST AND TIME OF FORECLOSURE 

AND 

STATES WHICH HAVE STATUTORY PERIODS OF REDEMPTION 


* * * 


Listed next below are fifteen states, five in a group; the first group being those states in which the fore' 
closure method is simple, the time short, and the cost low; the second group, those states where the method 
is cumbersome, the time unnecessarily long, and the cost higher; and the third group, those states wherein 
there is a period of redemption of a year or more, and in some of these states the mortgagor is entitled to 
possession during the period of redemption. 


GROUP I 

(Georgia, Mississippi, Missouri, North Carolina, West Virginia) 

The foreclosure method used by the Corporation and in general use in these states is by advertising and 
selling under the power of sale contained in the deed of trust or mortgage. Foreclosures in these states 
are simple, speedy, and inexpensive. Our study shows that: 

In GEORGIA, the average time to foreclose is 27 days and the average cost is $56.70. 

In MISSISSIPPI, the average time is 1 month and 24 days and the average cost is $58.51. 

In MISSOURI, the average time is 2 months and 16 days and the average cost where fee attorneys were 
used is $44.83 and where salaried attorneys were used $25.56. (It is to be noted that in Missouri, if the 
borrower gives notice at the sale or within 10 days before sale he may have 1 year within which to redeem 
the property. Since there are very few redemption notices given the Corporation, this time is not included 
in the average time to foreclose in Missouri.) 

In NORTH CAROLINA, the average time is 1 month, 16 days and the average cost is $64.07. 

In WEST VIRGINIA, foreclosure is by power of sale and the average time necessary to complete a 
foreclosure is 1 month and 6 days. The average cost is $56.93. 


GROUP II 

(Indiana, New Jersey, New York, Ohio, Wisconsin) 

In this group of states foreclosure may generally be had only by court action. (In New York foreclosure 
may also be by advertisement, although this method is seldom used.) The foreclosure procedure is detailed 
and cumbersome and the costs are excessive. 

In INDIANA, the foreclosure is by court action only and the average time is 1 year and 2 months. 
Under Indiana law the foreclosure sale can not be held until 1 year after the date of filing the complaint. The 
average cost in Indiana is $185.61. 


6 


In NEW JERSEY, the foreclosure method is by a proceeding in equity and the average time to foreclose 
is 4 months and 21 days. The average cost is $222.29. 

In NEW YORK, where the procedure is most complicated, the average time is 3 months, 17 days, and 
the average cost is $312.54. 

In OHIO, foreclosure may be had only by court action and the average time is 3 months and 24 days, 
and the average cost is $125.46. 

In WISCONSIN, foreclosure is by court action and the average time is 1 year and 4 months. It is to 
be noted that the foreclosure sale can not be held until 1 year after entry of judgment. The average cost is 
$169.94. 


GROUP III 

(California, Illinois, Iowa, Kansas, Michigan) 

In the above group of States, there is a redemption period of 1 year or more and in some of the States the 
mortgagor is entitled to possession during the redemption period. Foreclosure in all of the above States, 
with the exception of Michigan, is by court action. In Michigan, foreclosure may be had either by court 
action or by power of sale. 

In CALIFORNIA, the average time to foreclose is 1 year, 2 months and 26 days. This average time 
includes the redemption period, which is 1 year from date of sale. The average cost is $161.34. 

In ILLINOIS, the average time is 1 year, 7 months and 16 days. There is a 15'month redemption period 
from date of sale, the owner having 12 months within which to redeem the property and the creditors having 
an additional 3 months. The average cost of foreclosure in Illinois is $354.30. 

In IOWA, the average time to foreclose is 1 year, 3 months and 14 days. Redemption period is 1 year 
from date of sale and the mortgagor is entitled to possession during the redemption period. 

In KANSAS, the average time to foreclose is 11 months and 14 days, and the average cost is $90.88. 
Ordinarily, the redemption period is 18 months from the date of sale, and the mortgagor is entitled to pos- 
session during the redemption period. If, however, the property has been abandoned, or if the mortgage 
was a purchase money mortgage and the mortgagor does not have a 1/3 equity in the property, the redemption 
period is only 6 months. 

In MICHIGAN, where foreclosure may be had either by court action or by selling under power of sale, 
the average time is 1 year, 3 months and 1 day. Where the property has been foreclosed under the power 
of sale, there is a 1 year redemption period from date of sale during which time the mortgagor may remain 
in possession without the payment of taxes, insurance, rent, or any other item of expense. Where fore' 
closure is by court action, redemption period is 6 months from date of recording commissioner’s deed, during 
which time the mortgagor is entitled to possession as in the case of foreclosure by power of sale. The 
average cost per case in Michigan is $90.52. 


7 


SUMMARY OF FORE 


State 

Loan 

Amount 

Attorneys’ 

Fees 

Trustees' or 
Auctioneers' 
Fees 

Advertising 

Cost 

Referees’ or 
Commissioners' 
Fees 

Revenue 

Stamps 

Alabama. 

$398,167.77 

$ 3,320.00 


$1,185.24 


$114.00 

Arizona. 

372,460.79 

11,732.48 

— 

—• 

$3,622.13 

461.50 

Arkansas. 

219,184.25 

5,000.00 

— 

103.50 

— 

234.00 

California. 

401,503.84 

8,045.00 

— 

— 

4,210.00 

485.50 

Colorado. 

286,838.23 

5,150.00 

$508.29 

968.90 

— 

292.95 

Connecticut. 

585,538.27 

7,058.00 

— 

— 

— 

— 

Delaware. 

213,405.74 

— 

— 

3,291.79 

— 

62.00 

Dist. of Col. 

621,028.14 

— 

1,330.00 

3,911.27 

— 

553.00 

Florida. 

299,479.42 

9,520.00 

— 

1,232.60 

— 

74.50 

Georgia. 

300,959.28 

2,950.00 

— 

2,383.53 

— 

128.50 

Idaho. 

57,091.06 

1,712.50 

— 

— 

1,014.13 

72.00 

Illinois. 

549,257.00 

12,050.00 

— 

1,671.48 

12,068.26 

633.00 

Indiana. 

405,774.10 

8,925.00 

— 

— 

— 

494.00 

Iowa. 

324,236.06 

7,721.30 

— 

64.35 

— 

384.00 

Kansas. 

242,655.27 

5,010.00 

— 

— 

— 

126.60 

Kentucky. 

358,094.82 

7,500.00 

— 

— 

5,437.96 

287.00 

Louisiana. 

433,760.31 

— 

2,326.23 

3,621.47 

200.00 

108.50 

Maine. 

376,006.88 

980.00 

— 

998.81 

— 

— 

Maryland. 

356,043.98 

5,000.00 

999.50 

3,450.40 

923.67 

348.00 

Massachusetts. 

544,242.74 

— 

784.50 

1,604.99 

— 

— 

Michigan. 

491,085.76 

4,555.00 

299.25 

3,131.88 

— 

588.00 

Minnesota. 

373,283.23 

5,880.00 

— 

2,062.71 

— 

— 

Mississippi. 

320,931.34 

3,500.00 

— 

1,966.24 

— 

251.00 

Missouri. 

343,025.57 

— 

— 

1,763.80 

— 

230.50 

Montana. 

239,881.69 

10,520.00 

— 

— 

1,059.63 

313.00 

Nebraska. 

200,798.30 

4,900.00 

— 

— 

— 

— 

Nevada. 

34,860.14 

800.00 

— 

— 

244.35 

37.00 

New Hampshire. 

328,938.26 

4,075.00 

525.00 

1,428.96 

— 

311.90 

New Jersey. 

471,427.34 

8,455.00 

— 

— 

— 

— 

New Mexico. 

40,488.13 

1,516.29 

220.00 

320.11 

— 

41.00 

New York. 

389,039.04 

9,125.00 

460.00 

4,003.78 

6,632.25 

287.50 

North Carolina. 

437,476.72 

3,520.41 

128.00 

1,428.18 

25.00 

433.00 

North Dakota. 

275,430.17 

5,894.50 

1,508.85 

1,532.24 

— 

344.50 

Ohio. 

431,175.18 

4,900.00 

12.50 

833.56 

10.00 

386.50 

Oklahoma. 

261,450.02 

3,375.00 

— 

1,421.65 

35.00 

226.50 

Oregon. 

280,924.61 

7,370.00 

— 

— 

1,259.91 

341.50 

Pennsylvania. 

429,805.89 

4,977.50 

— 

6,504.21 

— 

57.30 

Rhode Island. 

534,307.41 

— 

1,006.93 

2,469.62 

— 

432.75 

South Carolina. 

255,989.49 

6,043.34 

143.00 

1,690.12 

2,438.69 

— 

South Dakota. 

225,122.58 

3,220.00 

— 

— 

— 

— 

Tennessee. 

323,179.75 

4,900.00 

— 

2,154.07 

— 

275.50 

Texas. 

223,836.74 

— 

— 

— 

— 

167.50 

Utah. 

321,751.15 

10,485.00 

— 

— 

2,031.88 

406.50 

Vermont. 

187,397.12 

2,626.80 

— 

— 

— 

— 

Virginia. 

551,262.83 

4,000.00 

977.50 

3,120.79 

358.00 

457.00 

Washington. 

250,640.79 

7,407.50 

— 

— 

2,295.95 

327.50 

West Virginia. 

475,120.45 

2,660.00 

— 

2,268.00 

— 

343.00 

Wisconsin. 

406,566.73 

6,540.00 

— 

— 

— 

360.00 

Wyoming. 

38,772.09 

1,720.00 

— 

— 

666.53 

49.50 


8 




















































CLOSURE COSTS 


Court 

Recording 

Other 

Total 

Average 

TIME TO COMPLETE FORECLOSURE 

Costs 

Fees 

Costs 

Foreclosure 

Cost 

From Date Dispatched From Date of Petition 




Costs 


to State Counsel or Advertisement 


— 

$127.55 

— 

$ 4,746.79 

$47.95 

1 mo. 10 days 

1 mo., 3 days 

$2,687.33 

311.05 

$1,220.70 

20,035.19 

202.38 

10 mos., 7 days 

8 mos., 27 days 

4,562.41 

130.50 

2,287.25 

12,317.66 

123.18 

6 mos., 5 days 

5 mos., 4 days 

1,378.15 

268.80 

1,746.75 

16,134.20 

161.34 

16 mos., 26 days 

14 mos., 26 days 

— 

158.55 

3,186.52 

10,265.21 

102.65 

8 mos., 13 days 

7 mos., 18 days 

4,041.91 

— 

— 

11,099.91 

111.00 

4 mos., 27 days 

4 mos., 4 days 

2,491.91 

156.00 

286.75 

6,288.45 

120.93 

3 mos., 28 days 

3 mos., 12 days 

— 

186.40 

69.00 

6,049.67 

68.75 

1 mo., 12 days 

1 mo., 3 days 

1,061.53 

173.75 

3,595.23 

15,657.61 

158.16 

4 mos., 22 days 

3 mos., 22 days 

— 

151.20 

— 

5,613.23 

56.70 

1 mo., 11 days 

27 days 

449.80 

32.40 

138.81 

3,419.64 

170.09 

16 mos., 23 days 

15 mos., 1 day 

2,734.36 

113.50 

5,460.65 

34,721.25 

354.30 

20 mos., 21 days 

19 mos., 16 days 

5,777.72 

121.62 

3,242.50 

18,560.84 

185.61 

15 mos., 5 days 

14 mos. 

3,875.61 

125.30 

764.67 

12,935.23 

129.35 

16 mos., 9 days 

15 mos., 14 days 

3,163.80 

54.20 

733.75 

9,088.35 

90.88 

12 mos., 18 days 

11 mos., 14 days 

1,476.99 

170.00 

50.95 

14,922.90 

149.23 

8 mos., 24 days 

6 mos., 3 days 

2,190.64 

1,374.00 

1,827.65 

12,288.49 

122.88 

5 mos., 26 days 

4 mos., 11 days 

— 

102.75 

8.10 

2,089.66 

21.32 

12 mos., 25 days 


3,465.33 

398.50 

1,170.40 

15,755.80 

157.56 

1 mo., 23 days 

1 mo., 11 days 

— 

431.98 

— 

2,821.47 

29.08 

2 mos., 6 days 


9.56 

412.80 

55.10 

9,051.59 

90.52 

15 mos., 15 days 

15 mos., 1 day 

— 

— 

1,668.16 

9,610.87 

96.11 

14 mos., 15 days 

13 mos., 25 days 

— 

164.10 

— 

5,881.34 

58.81 

2 mos., 14 days 

1 mo., 24 days 

— 

253.45 

— 

3,359.00 

33.92 

2 mos. 

1 mo., 16 days 

1,244.04 

129.50 

643.21 

13,909.38 

161.74 

16 mos., 19 days 

15 mos., 2 days 

5,125.45 

21.35 

835.20 

10,882.00 

112.19 

7 mos., 29 days 

5 mos., 26 days 

176.94 

17.10 

62.65 

1,338.04 

223.01 

20 mos., 22 days 

15 mos., 12 days 

— 

387.32 

— 

6,728.18 

70.82 

1 mo., 27 days 


13,773.92 

— 

— 

22,228.92 

222.29 

6 mos., 3 days 

4 mos., 21 days 

189.55 

25.50 

493.65 

2,806.10 

175.38 

14 mos., 22 days 

13 mos. 

524.99 

166.13 

1,615.82 

22,815.47 

312.54 

5 mos., 29 days 

3 mos., 17 days 

808.70 

193.95 

— 

6,343.29 

64.07 

2 mos., 7 days 

1 mo., 16 days 

639.34 

478.54 

980.93 

11,378.90 

114.94 

17 mos., 18 days 

16 mos., 4 days 

6,163.04 

140.18 

808.00 

12,420.22 

125.46 

4 mos., 14 days 

3 mos., 24 days 

1,249.61 

160.15 

4,533.38 

11,001.29 

130.97 

11 mos., 19 days 

9 mos., 20 days 

2,107.46 

201.35 

1,756.80 

13,037.02 

130.37 

17 mos. 

15 mos., 10 days 

3,396.96 

57.00 

675.84 

15,668.81 

158.27 

2 mos., 6 days 

1 mo., 19 days 

— 

472.65 

— 

4,381.95 

44.72 

2 mos., 10 days 


1,206.73 

128.25 

428.81 

12,078.94 

123.25 

3 mos., 26 days 

2 mos., 28 days 

— 

642.50 

3,221.32 

7,083.72 

70.84 

14 mos., 5 days 

13 mos., 25 days 

— 

254.35 

11.65 

7,595.57 

77.51 

1 mo., 28 days 

1 mo., 11 days 

— 

314.30 

— 

481.80 

5.18 

1 mo., 10 days 

21.9 days 

2,009.72 

216.50 

682.99 

15,832.59 

158.33 

17 mos., 1 day 

14 mos., 23 days 

1,453.02 

— 

— 

4,079.82 

97.14 

9 mos., 9 days 

8 mos., 27 days 

1.00 

509.42 

24.00 

9,447.71 

94.48 

20 days 

8 days 

2,270.35 

152.15 

986.20 

13,439.65 

134.40 

17 mos., 23 days 

16 mos., 6 days 

148.50 

273.25 

— 

5,692.75 

56.93 

1 mo., 25 days 

1 mo., 6 days 

4,124.41 

1.40 

1,379.84 

12,405.65 

169.94 

17 mos. 

16 mos. 

87.30 

32.55 

229.93 

2,785.81 

174,11 

16 mos., 27 days 

15 mos., 1 day 


9 



FORECLOSURES: AVERAGE TIME REQUIRED TO COMPLETE COMPARED WITH AVERAGE 

COST BASED ON H. O. L. C. EXPERIENCE 


TIME W MONTHS 

25 20 15 10 5 0 


COST‘S DOLLARS 

0 100 200 300 .400 


■ » 



....ALABAMA_ 

....ARIZONA. 

.ARKANSAS.... 

....CALIFORNIA_ 

_.COLORADO. 

| ...CONNECTICUT.... 

...DELAWARE. 

I.DIST. OF COLUMBIA. 

_.FLORIDA. 

.....GEORGIA. 

.IDAHO. 

_ILLINOIS. 

.INDIANA. 

.IOWA. 

_KANSAS_ 

...KENTUCKY. 

|.LOUISIANA. 

.MAINE. 

_MARYLAND. 

(..MASSACHUSETTS.. 

...MICHIGAN_ 

...MINNESOTA_ 

|_MISSISSIPPI_ 

...MISSOURI. 

...MONTANA. 

...NEBRASKA_ 

_NEVADA. 

I ..NEW HAMPSHIRE.- 

....NEW JERSEY- 

I ....NEW MEXICO.... 

.NEW YORK. 

NORTH CAROLINA 
...NORTH DAKOTA... 

.OHIO. 

.OKLAHOMA. 

.OREGON. 

I ...PENNSYLVANIA... 
|.-RHODE ISLAND.. 

SOUTH CAROLINA 
| ..SOUTH DAKOTA.. 

.TENNESSEE_ 

.TEXAS. 

.UTAH. 

.VERMONT_ 

.VIRGINIA. 

....WASHINGTON_ 

[..WEST VIRGINIA.. 

I.WISCONSIN. 

_WYOMING. 



1 In case of foreclosure in court, the time has been computed 
from the date of the filing of the petition to foreclose to the date of 
acquisition of title, free of all rights of redemption. 

In case of foreclosure under power of sale contained in the 
mortgage or deed of trust, the time has been computed from the 
date of the first publication of notice of sale or of intention to 
foreclose, where such is required, to the date of acquisition of 
title, free of all rights of redemption. 


5 Costs do not include salaried personnel; in both Texas and 
Massachusetts salaried attorneys handle foreclosure. 


10 
























































































































Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF ALABAMA 


COSTS 


Items Number 

of Cases 


Loan Amount. 99 

Attorney’s Fees. 88 

Advertising Cost. 99 

Revenue Stamps. 30 

Recording Fees. 99 

TOTAL FORECLOSURE COSTS. . 99 

Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$398,167.77 

$4,021.90 

69.9% 

3,320.00** 

35.00* 

25.0% 

1,185.24 

12.00 

2.4% 

114.00 

3.80 

2.7% 

127.55 

1.29 

100.0% 

1-2% 

$ 4,746.79** 

$ 47.95 


—O— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 99 1 month, 10 days 

From date of advertisement. 99 1 month, 3 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Alabama is by power of sale. Foreclosure sale must be 
held in the County where the land is located and notice must be given by publication for 
three successive weeks. Foreclosure deed conveys the legal title and entitles the purchaser 
to possession during the two-year redemption period. 

—O— 


* Modal Average. 

**$385.00 has been added to the reported total to cover estimated attorney fees for 11 cases handled by 
salaried personnel. 


11 











Home Owners’ Loan Corporation 


Items 


FORECLOSURE COSTS 

STATE OF ARIZONA 

COSTS 

Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

99 


$372,460.79 

$3,762.23 

Attorney’s Fees. 

99 

58.6% 

11,732.48 

118.51 

Comm, and/or Shrf’s Fees. 

99 

18.1% 

3,622.13 

36.59 

Revenue Stamps. 

99 

2.3% 

461.50 

4.66 

Court Costs. 

99 

13.4% 

2,687.33 

27.14 

Recording Fees. 

99 

1-5% 

311.05 

3.15 

Title Search. 

99 

5.3% 

1,058.00 

10.00 : 

Guardian & Administration Fees. 

Cost of Ancillary Proceedings: Pro' 

3 

0.2% 

45.00 

15.00 

bate, Guardianship, Bankruptcy, etc. 

8 

0.6% 

117-70 

14.71 

TOTAL FORECLOSURE COSTS. . 
Cost Percentage of Loan Amount.... 

99 

100.0% 

5.4% 

$ 20,035.19 

$ 202.38 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 99 10 months, 7 days 

From date of petition. 99 8 months, 27 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Arizona is by court action instituted by the filing of a petition 
praying for a judgment for the amount of the indebtedness and foreclosure of the mortgage 
lien and sale of the mortgaged property. After judgment is entered a special execution 
is directed to the Sheriff who causes an advertisement to be inserted in a newspaper for 
30 days prior to the sale. The sale is made by the Sheriff in front of the court house, to 
the highest bidder, and a certificate of sale is issued to the purchaser entitling him to a 
deed unless the property is redeemed within the six months redemption period. 

—O— 

* Modal average. 


12 













Homr Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF ARKANSAS 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

. . 100 


$219,184.25 

$2,191.84 

Attorney’s Fees. 

. . 100 

40.6% 

5,000.00 

50.00 

Advertising Cost. 

11 

0.8% 

103.50 

9.41 

Revenue Stamps. 

. . 100 

1 . 9 % 

234.00 

2.34 

Court Costs. 

. . 100 

37-0% 

4,562.41 

45.62 

Recording Fees. 

43 

1 . 1 % 

130.50 

3.00 

Abstract Costs. 

.. 100 

18.6% 

2,287.25 

22.87 

TOTAL FORECLOSURE COSTS 
Cost Percentage of Loan Amount. .. 

. . 100 

100.0% 

5.6% 

$ 12,317.66 

$ 123.18 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 100 6 months, 5 days 

From date of petition. 100 5 months, 4 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Arkansas is by suit in Chancery instituted by the filing of 
a complaint. Decree is entered providing that if the judgment is not paid within a time 
fixed by the court (from five to one hundred twenty'five days) the property shall be sold 
by the court’s commissioner at public auction after advertisement for twenty days. The 
sale must be confirmed by the court and thereafter the commissioner executes a deed to 
the purchaser. There is no redemption period after sale. 


13 













Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF CALIFORNIA 

COSTS 


Items Number 

of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

100 


$401,503.84 

$4,015.04 

Attorney’s Fees. 

100 

49.9% 

8,045.00 

80.45 

Commissioner's Fees. 

100 

26.1% 

4,210.00 

42.10 

Revenue Stamps. 

100 

3.0% 

485.50 

4.86 

Court Costs. 

100 

8.5% 

1,378.15 

13.78 

Recording Fees. 

100 

1.7% 

268.80 

2.69 

Title Search. 

100 

9.4% 

1,516.20 

15.00* 

Guardian & Administration Fees. 

Cost of Ancillary Proceedings: Pro 

2 

0.3% 

50.00 

25.00 

bate, Guardianship, Bankruptcy, etc. 

9 

1.1% 

180.55 

20.06 

TOTAL FORECLOSURE COSTS.. 
Cost Percentage of Loan Amount. 

100 

100.0% 

4.0% 

$ 16,134.20 

$ 161.34 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 100 1 year, 4 months, 26 days 

From date of petition. 100 1 year, 2 months, 26 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in California is by court action instituted by filing of the com- 
plaint. Thereafter judgment is entered and the property is ordered to be sold. The 
Court usually appoints a commissioner to sell the property after advertisement. The 
period of redemption is one year from date of sale and the deed is issued after the expiration 
of the redemption period. The California Moratorium Law does not apply to HOLC 
mortgages. 

—O— 

* Modal average. 


14 














Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF COLORADO 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

. 100 


$286,838.23 

$2,868.38 

Attorney’s Fees. 

. 100 

50.2% 

5,150.00 

50.00* 

Trustee’s Fees. 

47 

4.9% 

508.29 

10.81 

Advertising Cost. 

44 

9.4% 

968.90 

22.02 

Revenue Stamps. 

89 

2.9% 

292.95 

3.29 

Recording Fees. 

86 

1.5% 

158.55 

1.84 

Abstract Fees. 

95 

10.2% 

1,049.55 

11.05 

Second Abstract Fees. 

• 57 

20.8% 

2,131.75 

37.40 

Second Trustee’s Fees. 

8 

0.1% 

5.22 

.65 

TOTAL FORECLOSURE COSTS. 

. 100 

100.0% 

$ 10,265.21 

$ 102.65 

Cost Percentage of Loan Amount. ... 


3.6% 




—O— 



TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 


From date dispatched to State Counsel 

. 100 

8 months, 13 days 


From date of advertisement. 

. 100 

7 months, 18 days 



—o— 


METHOD OF FORECLOSURE 

The method of foreclosure used almost exclusively in Colorado is by power of sale. 
Sale is conducted by public trustee after publication for four weeks and mailing notices 
to interested parties. Upon sale by the public trustee, a certificate of sale is issued to the 
purchaser. There is a six-months period of redemption after date of sale. If there is no 
redemption, the purchaser is entitled to a deed. 

—O— 

* Modal average. 


15 
















Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF CONNECTICUT 


Items 


COSTS 

Number Percentage Total 

of Cases Amount 


Average 

Amount 


Loan Amount. 

Attorney's Fees. 

Court Costs**. 

100 

100* 

100 

63.6% 

36.4% 

$585,538.27 

7,058.00 

4,041.91 

$5,855.38 

70.58 

40.42 

TOTAL FORECLOSURE COSTS. . 
Cost Percentage of Loan Amount. 

100 

100.0% 

1.9% 

$ 11,099.91 

$ 111.00 


—O— 





TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 100 4 months, 27 days 

From date of petition. 100 4 months, 4 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure is strict foreclosure. Suit is brought in equity by the filing of 
a complaint and lis pendens is recorded in the land records. If no defense is disclosed, 
judgment of foreclosure is entered and the court fixes the time within which the owner 
must redeem. If there is no redemption during that time, a certificate of foreclosure is 
filed in the land records and title becomes absolute in the foreclosing mortgage. 

—O— 

* 55 cases reported Attorney's Fees in the amount of $75.00. 

44 cases reported Attorney's Fees in the amount of $65.00. 

1 case reported Attorney’s Fees in the amount of $73.00. 

** Lump sum only is available for total court costs. (Applies to all of Region IB.) 


16 









Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF DELAWARE 

COSTS 


Items Number 

of Cases 


Loan Amount. 52 

Advertising Cost. 52 

Revenue Stamps. 18 

Court Costs. 52 

Recording Fees. 52 

Costs of Administration on Estate.... 3 

Cost of Appointment of Trustee. 1 


TOTAL FORECLOSURE COSTS. . 52 

Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$213,405.74 

$4,103.96 

52.3% 

3,291.79 

63.30 

1.0% 

62.00 

3.44 

39.6% 

2,491.91 

47.92 

2-5% 

156.00 

3.00* 

4.5% 

283.25 

94.42 

0.1% 

3.50 

3.50 

100.0% 

2.9% 

$ 6,288.45 

$ 120.93 


—O— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 52 3 months, 28 days 

From date of petition. 52 3 months, 12 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Delaware is either (1) by suit in equity or (2) by writ of 
scire facias. In the latter method, upon his judgment plaintiff has execution by levari 
facias. The sale may take place 24 days after the issuance of a levari facias. After the 
sale is confirmed the sheriff’s deed issues to the purchaser at the sale. If foreclosure is 
by proceedings in equity the foreclosure sale cuts off the equity of redemption. 

—O— 


* Modal average. 


17 












Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

DISTRICT OF COLUMBIA 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

88 


$621,028.14 

$7,057.14 

Auctioneer’s Fees. 

88 

22.0% 

1,330.00 

15.00* 

Advertising Cost. 

88 

64.7% 

3,911.27 

44.45 

Revenue Stamps. 

88 

9.1% 

553.00 

6.28 

Recording Fees. 

88 

3.1% 

186.40 

2.12 

Special Costs to Perfect Title. 

1 

1 . 1 % 

69.00 

69.00 

TOTAL FORECLOSURE COSTS. 
Cost Percentage of Loan Amount. . . 

. 88 

100.0% 

1.0% 

$ 6,049.67 

$ 68.75 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 88 1 month, 12 days 

From date of advertisement. 88 1 month, 3 days 

—O— 

METHOD OF FORECLOSURE 

Foreclosure in the District of Columbia is by power of sale under deed of trust. The 
time necessary to advertise the property before sale is usually fixed by the deed of trust. 
HOLC advertises once a week for three weeks. The property is sold by an auctioneer, 
and the trustee executes a deed to the purchaser. No court proceedings are required, 
and there is no right of redemption after sale. 

—O— 

* Modal average. 


18 













Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF FLORIDA 


COSTS 


Items Number 

of Cases 


Loan Amount. 99 

Attorney’s Fees. 99 

Advertising Cost. 99 

Revenue Stamps. 20 

Court Costs. 99 

Recording Fees. 98 

Abstract Extension. 98 

Sheriff’s Cost. 99 

Special Master’s Fee, Guardian ad 
litem. Administrator ad litem. 99 


TOTAL FORECLOSURE COSTS. . 99 

Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$299,479.42 

$3,025.04 

60.8% 

9,520.00 

96.16 

7.9% 

1,232.60 

12.45 

0.5% 

74.50 

3.73 

6.8% 

1,061.53 

10.72 

1-1% 

173.75 

1.77 

9.8% 

1,537.16 

15.69 

3.6% 

563.07 

5.69 

9.5% 

1,495.00 

15.10 

100.0% 

5.2% 

$ 15,657.61 

$ 158.16 


—O— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 99 4 months, 22 days 

From date of petition. 99 3 months, 22 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Florida is by proceeding in equity, instituted by the filing of 
a bill of complaint. The case is referred to a special Master who makes a report to the 
Court. Final decree is entered containing a provision as to the time required for publica' 
tion of the notice of sale. The property is sold and the Master executes deed to the 
purchaser. There is no redemption period. 

—O— 


19 















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF GEORGIA 

COSTS 

Items Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

99 


$300,959.28 

$3,009.59 

Attorney’s Fees. 

99 

52.5% 

2,950.00* 

29.80 

Advertising Cost. 

99 

42.5% 

2,383.53 

24.08 

Revenue Stamps. 

42 

2.3% 

128.50 

3.06 

Recording Fees. 

99 

2.7% 

151.20 

1.53 

TOTAL FORECLOSURE COSTS. 

. 99 

100.0% 

$ 5,613.23 

$ 56.70 

Cost Percentage of Loan Amount. ... 

—O— 

1.9% 



TIME TO FORECLOSE 



Period 

Number 
of Cases 


Average 

Time 


From date dispatched to State Counsel 

. 99 

1 month, 11 days 


From date of advertising. 

. 99 

27 days 



—o— 

METHOD OF FORECLOSURE 

Method of foreclosure in Georgia is in Equity, a Court of Law, or by Power of Sale. 
The Corporation uses the Power of Sale method which is economical and short. Ad¬ 
vertisement in a newspaper of general circulation in the county wherein the land lies once 
a week for four weeks preceding the first Tuesday in each month. Once a week for four 
weeks does not necessarily mean twenty-eight days, but once in each of four different 
weeks. If begun in time, advertisement, sale and possession can be had in twenty-two 
days. 


* 56 cases reported Attorney Fees in the amount of $25.00; 
40 cases reported Attorney Fees in the amount of $35.00; 
3 cases reported Attorney Fees in the amount of $50.00. 


20 











Home Owners’ Loan Corporation 


FORECLOSURE COSTS 


Items 

STATE OF IDAHO 

COSTS 

Number Percentage 

of Cases 

Total 

Amount 

Average 

Amount 

Loan Amount. 

. 20 


$ 57,091.06 

$2,854.55 

Attorney’s Fees. 

.... 20 

50.1% 

1,712.50 

85.63 

Comm, and/or Shrf’s Fees. 

. 20 

29.7% 

1,014.13 

50.71 

Revenue Stamps. 

. 20 

2.1% 

72.00 

3.60 

Court Costs. 

. 20 

13.1% 

449.80 

22.49 

Recording Fees. 

. 20 

0.9% 

32.40 

1.60* 

Title Search. 

Cost of Ancillary Proceedings: 

. 14 

Pro- 

3.8% 

128.81 

9.20 

bate, Guardianship, Bankruptcy, etc. 1 

0.3% 

10.00 

10.00 

TOTAL FORECLOSURE COSTS.. 20 

Cost Percentage of Loan Amount. 

100.0% 

6.0% 

$ 3,419.64 

$ 170.98 


—O— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 20 1 year, 4 months, 23 days 

From date of petition. 20 1 year, 3 months, 1 day 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Idaho is by court action instituted by the filing of a complaint. 
After judgment is rendered the property is advertised and sold by the Sheriff. There is 
a one-year redemption period from date of sale during which the mortgagor is entitled to 
possession. Deed is executed after the expiration of the redemption period. 

—O— 

* Modal average. 


21 













Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF ILLINOIS 

COSTS 


Items 

Number 

of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

98 


$549,257.00 

$5,605.00 

Attorney’s Fees. 

98 

34.7% 

12,050.00 

125.00* 

Advertising Cost. 

97 

4.8% 

1,671.48 

17-23 

Master in Chancery’s Fee. 

98 

34.8% 

12,068.26 

127.00* 

Revenue Stamps**. 

98 

1.8% 

633.00 

6.46 

Court Costs. 

98 

7.9% 

2,734.36 

27.80 

Recording Fees***. 

91 

0.3% 

113.50 

1.25* 

Title Charges. 

98 

13.5% 

4,693.43 

47.89 

Court Reporter. 

98 

2.1% 

735.20 

7.50 

Photostats. 

5 

o.i% 

32.02 

6.40 

TOTAL FORECLOSURE COSTS. 
Cost Percentage of Loan Amount. .. 

. 98 

100.0% 

6.3% 

$ 34,721.25 

$ 354.30 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 98 1 year, 8 months, 21 days 

From date of petition. 98 1 year, 7 months, 16 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Illinois is by court action instituted by the filing of complaint. 
The case is referred to a Master in Chancery to whom proof must be submitted upon which 
the Master renders a report to the court. A decree of foreclosure and sale is entered 
followed by sale of the property. There must be a decree approving the sale and the 
deficiency if there is one. There is a fifteen months redemption period (owner has 12 
months and creditors have an additional 3 months) from the date of sale. An order may 
be entered appointing a receiver or an order for the owner to pay rents during the redemp- 
tion period. When the redemption period expires, the Master executes a deed to the 
purchaser. 

—O— 

* Modal average. 

** All but five revenue stamps were estimated. 

*** All but two recording fees were estimated. 


22 
















Home Owners' Loan Corporation 


FORECLOSURE COSTS 
STATE OF INDIANA 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

. . 100 


$405,774.10 

$4,057.74 

Attorney’s Fees. 

. 99 

48.1% 

8,925.00 

90.15 

Administrator’s Fees. 

1 

0.1% 

25.00 

25.00 

Revenue Stamps. 

99 

27% 

494.00 

4.99 

Court Costs. 

98 

31.1% 

5,777.72* 

58.96 

Recording Fees. 

.. 100 

07% 

121.62 

1.22 

Receiver's Expenses. 

45 

11.4% 

2,123.05 

47.18 

Abstract Expenses. 

. . 100 

5.8% 

1,084.45 

10.84 

Other Costs (Admr’s Fee). 

1 

0.1% 

10.00 

10.00 

TOTAL FORECLOSURE COSTS. 
Cost Percentage of Loan Amount. .. 

. . 100 

100.0% 

4.6% 

$ 18,560.84 

$ 185.61 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 100 1 year, 3 months, 5 days 

From date of petition. 99 1 year, 2 months 

—O— 

METHOD OF FORECLOSURE 

Foreclosure is by court action, and sale cannot be held until one year from date of 
filing of petition. 


* Court Costs include Sheriff’s Fees and Advertising Cost. (35 cases reported Sheriff's Fees amounting to 
$963.25, average cost per case being $27.52; 35 cases reported Advertising Cost in the amount of $415.83, 
average cost per case reporting this item being $11.88.) 


23 















Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF IOWA 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 


Average 

Amount 

Loan Amount. 

. 100 


$324,236.06 

$3,242.36 

Attorney’s Fees. 

. 100 

59.7% 

7,721.30 


77.21 

Advertising Cost. 

. 6 

0.5% 

64.35 


10.73 

Revenue Stamps. 

. 100 

3.0% 

384.00 


3.84 

Court Costs*. 

. 100 

30.0% 

3,875.61 


38.76 

Recording Fees**. 

. 100 

i.o% 

125.30 


1.25 

Abstract Fees. 

. 97 

5.5% 

713.07 


7.35 

Probate Court Costs.... 

. 5 

0.2% 

31.60 


6.32 

Administrator’s Bond. . . 

. 1 

0.1% 

20.00 


20.00 

TOTAL FORECLOSURE COSTS.. 100 

100.0% 

$ 12,935.23 

$ 

129.35 

Cost Percentage of Loan Amount. 

4.0% 





—o— 





TIME TO FORECLOSE 




Period 

Number 

Average 




of Cases 


Time 



From date dispatched to State Counsel. 100 

1 year, 4 months, 9 days 


From date of petition. . . , 

. 100 

1 year, 3 months, 14 days 



—o— 


METHOD OF FORECLOSURE 

Method of foreclosure in Iowa is by an equitable proceeding instituted by the filing of 
a petition. After a decree of foreclosure is entered the mortgagee is entitled to an execu¬ 
tion which is placed in the hands of the sheriff. After Sheriff’s Sale the mortgagor is 
given one year from that date in which to redeem the property. The mortgagor is entitled 
to possession during the period of redemption. Under the provision of a law enacted 
in the 1937 session of the Iowa Legislature, a stay of foreclosure proceedings may be 
obtained until March 1, 1937 in all foreclosures of mortgages executed prior to January 
1, 1936; or if case is in redemption, an extension of redemption may be obtained for a 
commensurate length of time. 

—Q— 


* Includes sheriff’s fees, advertising costs unless otherwise indicated. 

** Estimate only. 


24 















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF KANSAS 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

.. 100 


$242,655.27 

$2,426.55 

Attorney’s Fees. 

. . 100 

55.1% 

5,010.00 

50.00 

Revenue Stamps. 

.. 38 

1.4% 

126.60 

3.33 

Court Costs. 

. . 100 

34.8% 

3,163.80 

31.64 

Recording Fees. 

31 

0.6% 

54.20 

1.75 

Abstract Fees. 

99 

5.4% 

487.00 

4.92 

Rev. Stamps and Rec. Fee* . 

55 

2.7% 

246.75 

4.49 

TOTAL FORECLOSURE COSTS 

. . 100 

100.0% 

$ 9,088.35 

$ 90.88 

Cost Percentage of Loan Amount. .. 


3-7% 


—O— 




TIME 

TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 


From date dispatched to State Counsel. 100 

From date of petition. 100 

I year, 18 days 

II months, 14 days 



—o— 


METHOD OF FORECLOSURE 

Method of foreclosure in Kansas is by court action instituted by the filing of a petition. 
After judgment is entered an order of sale issues and the property is advertised for 30 days. 
The property is sold by the sheriff at public auction. The sale must be confirmed by the 
court and thereafter a certificate of purchase is executed by the sheriff to the purchaser. 
Ordinarily the redemption period is 18 months from the date of sale and the mortgagor 
is entitled to possession during the redemption period. If, however, the property has 
been abandoned or if the mortgage was a purchase money mortgage and the mortgagor 
does not have a one-third equity, the redemption period is only six months. 

—O— 


* 55 cases reported lump sum for revenue stamps and recording fee in the amount of $246.75 which is included 
in the total foreclosure costs. 













Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF KENTUCKY 


COSTS 


Items Number 

of Cases 


Loan Amount. 100 

Attorney’s Fees. 100 

Commissioner’s Fees. 99 

Revenue Stamps. 100 

Court Costs. 92 

Recording Fees. 100 

Premium on Bond. 3 


TOTAL FORECLOSURE COSTS. . 100 
Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$358,094.82 

$3,580.95 

50.3% 

7,500.00 

75.00 

36.4% 

5,437.96 

54.93 

1.9% 

287.00 

2.87 

10.0% 

1,476.99 

16.05 

1.1% 

170.00 

1.70 

0.3% 

50.95 

16.98 

100.0% 

4.2% 

$ 14,922.90 

$ 149.23 


TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 100 8 months, 24 days 

From date of petition. 100 6 months, 3 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Kentucky is by court action instituted by the filing of a 
petition. The case is referred to a commissioner, who returns the case to the court for 
judgment. Judgment is entered and sale date is set by the commissioner at least three 
weeks later after proper advertisement. The sale must be confirmed by the court. Deed 
is executed by the commissioner. If the property does not bring two'thirds of its ap' 
praised value at the foreclosure sale, the mortgagor is entitled to a period of redemption 
for one year. 


26 













Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF LOUISIANA 

COSTS 


Items Number 

of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

100 


$433,760.31 

$4,337.60 

Sheriff’s Fees. 

100 

20.0% 

2,326.23 

23.26 

Advertising Cost. 

100 

31.1% 

3,621.47 

36.21 

Curator’s Fees. 

7 

1.7% 

200.00 

25.00* 

Revenue Stamps. 

99 

0.9% 

108.50 

1.10 

Court Costs. 

99 

18.8% 

2,190.64 

22.13 

Recording Fees. 

100 

11.8% 

1,374.00 

15.00* 

Cost of Survey. 

88 

7.6% 

890.00 

10.00* 

Sheriff’s Charges (Miscl). 

100 

8.0% 

921.80 

9.22 

Cost of Copies (Certified). 

5 

0.1% 

15.85 

3.17 

TOTAL FORECLOSURE COSTS**. 


100.0% 

$ 11,648.49** 


Cost Percentage of Loan Amount. 


2.7% 




—O— 



TIME TO FORECLOSE 



Period Number 


Average 


of Cases 


Time 


From date dispatched to State Counsel. 

100 

5 months, 26 days 


From date of petition. 

100 

4 months, 11 days 



— o— 



METHOD 

OF FORECLOSURE 


Method of foreclosure in Louisiana 

is by court action. 

There are two modes: (1) 


Ordinary Process, and (2) Executory Process. Ordinary Process is by filing suit, followed 
by judgment. Writ of fi. fa. is issued and the property sold. Executory Process is based 
on confession of judgment. Mortgagee files a petition, whereupon the court enters an 
order for the issuance of executory process. Notice of demand is served upon the debtor, 
and, if payment is not made within a certain time, a writ of execution and sale is issued 
to the sheriff, and the mortgaged property is seized. Notice of seizure is served on the 
debtor, and three days thereafter the property is advertised for sale once a week for thirty 
days. The property is then sold at public auction. 

—O— 

* Modal average. 

** 16 cases reporting attorney fees showed a total foreclosure cost of $1,768.93—average foreclosure cost, 
$110.56; 84 cases handled by salaried attorneys reporting no attorney fees showed a total foreclosure cost 
of $10,519.56—average foreclosure cost, $125.23. 


27 
















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF MAINE 


COSTS 


Items Number 

of Cases 


Loan Amount. 98 

Attorney's Fees. 98 

Advertising Cost. 97 

Recording Fees. 98 

Postage. 43 

Cert, of Foreclosure. 14 


TOTAL FORECLOSURE COSTS. . 98 

Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$376,006.88 

$3,836.80 

46.9% 

980.00 

10.00 

47.8% 

998.81 

10.30 

4.9% 

102.75 

1.05 

0.1% 

1.32 

.03 

0.3% 

6.78 

.50* 

100.0% 

0.6% 

$ 2,089.66 

$ 21.32 


TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 85 1 year, 25 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure most generally used in Maine is by giving public notice by 
advertising in a newspaper for three weeks, the claim by mortgage on the property, stating 
the date of the mortgage and that the condition thereof is broken and claiming a foreclosure 
(copy of this notice with the named and date of the newspaper must be recorded in the 
Registry of Deeds within 30 days after the last publication); or, by serving on the mortgager 
a copy of said notice by the sheriff and causing notice and return to be recorded within 
30 days after service. 


* Modal average. 


28 











Home Owners' Loan Corporation 


FORECLOSURE COSTS 
STATE OF MARYLAND 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 



$356,043.98 

$3,560.44 

Attorney’s Fees. 

. 100 

31.7% 

5,000.00 

50.00 

Trustee’s Fees. 

. 100 

6.3% 

999.50 

10.00 

Advertising Cost. 

. 100 

21.9% 

3,450.40 

34.50 

Auditor’s Fees. 

. 98 

5.9% 

923.67 

9.43 

Revenue Stamps. 

. 100 

2.2% 

348.00 

3.48 

Court Costs. 

. 100 

22.0% 

3,465.33 

34.65 

Recording Fees. 

. 100 

2.5% 

398.50 

4.00* 

Premium on Bond. 

. 100 

7.5% 

1,170.40 

11.70 

TOTAL FORECLOSURE COSTS.. 100 

100.0% 

$ 15,755.80 

$ 157.56 

Cost Percentage of Loan Amount. 

4.4% 




—O— 




TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 



From date dispatched to State Counsel. 100 1 month, 23 days 

From date of petition or advertisement. 100 1 month, 11 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Maryland is by power of sale contained in the mortgage as 
to mortgages of the counties, and under a decree of the equity court as to mortgages in 
the City of Baltimore. In the counties the lien instrument and note are filed in court for 
the purpose of docketing the foreclosure case and the attorney, as assignee of the mortgage, 
after giving a bond, advertises for at least 20 days and sells the property. The sale is 
reported to the court and a ratification nisi is passed running for thirty days, and must 
be published three times. Thereafter the court ratifies the sale and the attorney executes 
a deed to the purchaser. In the City of Baltimore a petition must be filed in court and 
the court signs a decree for the sale of the property. There is no right to redeem the 
property after sale. 

—O— 


* Modal average. 


29 














Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF MASSACHUSETTS 


Items 


COSTS 

Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

97 


$544,242.74 

$5,610.75 

Auctioneer’s Fees. 

91 

27.8% 

784.50 

8.62 

Advertising Cost. 

91 

56.9% 

1,604.99 

17.64 

Recording Fees. 

95 

15.3% 

431.98 

4.55 

TOTAL FORECLOSURE COSTS. . 
Cost Percentage of Loan Amount. 

97 

100.0% 

0.5% 

$ 2,821.47 

$ 29.08 


—o— 

TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 97 2 months, 6 days 

From date of advertisement. No breakdown 


—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Massachusetts is (1) by entry, or (2) by advertisement and 
sale under power of sale. The property must be advertised for three weeks and the first 
advertisement must appear twenty'one days before the date of sale. There is no redemp' 
tion after foreclosure by sale; there is a three^year redemption period after foreclosure 
by entry, but this method is rarely used by the HOLC. 


30 










Home Owners’ Loan Corporation 


FORECLOSURE COSTS 
STATE OF MICHIGAN 

COSTS 

Items Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

. 100 


$491,085.76 $4, 

910.86 

Attorney’s Fees. 

. 100 

50.32% 

4,555.00 

45.55 

Sheriff’s Fees. 

. 99* 

3.30% 

299.25 

3.02 

Advertising Cost. 

. 99 

34.60% 

3,131.88 

31.64 

Administrator’s Fees. 

1 

0.34% 

31.10 

31.10 

Revenue Stamps. 

. 100 

6.49% 

588.00 

5.88 

Court Costs. 

1 

0.10% 

9.56 

9.56 

Recording Fees. 

. 100** 

4.56% 

412.80 

4.13 

Receiver’s Expenses. 

3 

0.23% 

21.00 

7.00 

Abstract Expenses. 

1 

0.03% 

3.00 

3.00 

TOTAL FORECLOSURE COSTS. 

. 100 

99.97%** $ 9,051.59 $ 

90.52 

Cost Percentage of Loan Amount.... 


9.9 % 




— o— 




TIME 

TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 


From date dispatched to State Counsel. 100 

From date of advertisement. 100 

—O— 

1 year, 3 months, 15 days 

1 year, 3 months, 1 day 



METHOD OF FORECLOSURE 


Method of foreclosure is by court action and power of sale. Practically all of our cases 
are by power of sale. The mortgagor has one year from date of sale in which to redeem, 
and may remain in possession without the payment of taxes, insurance, rent, or any other 
item of expense. His right of redemption expires automatically one year from the date 
of sale. 

—O— 


* 98 out of 99 cases reporting item reported fee of $3.00. 

** 45 cases reported item $4.00, and 37 cases reported item $4.50. 


31 
















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF MINNESOTA 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

. . 100 


$373,283.23 

$3,732.83 

Attorney’s Fees. 

. 100 

61.2% 

5,880.00 

60.00* 

Advertising Cost. 

. . 100 

21.4% 

2,062.71 

20.63 

Sale Costs, Including Sheriff’s Fees, 




Revenue Stamps, Recording Fees. 

. 100 

16.6% 

1,593.16 

15.93 

Costs for Recording of Liens. 

.. 67 

0.7% 

67.00 

1.00 

Abstract Charges. 

1 

0.1% 

8.00 

8.00 

TOTAL FORECLOSURE COSTS. 

. 100 

100.0% 

$ 9,610.87 

$ 96.11 

Cost Percentage of Loan Amount. . . 


2.6% 




—o— 




TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 



From date dispatched to State Counsel. 100 1 year, 2 months, 15 days 

From date of advertisement. 100 1 year, 1 month, 25 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Minnesota is either by court action or by advertisement under 
power of sale. The latter method is used almost exclusively. In foreclosure by ad' 
vertisement, power of attorney is executed naming the attorney who will foreclose the 
mortgage. Notice of foreclosure sale must be published six weeks, and personal service 
of the notice must be made upon the occupant of the premises. The sale is held, and a 
foreclosure record, including notice of sale, affidavit of service, affidavit of the printer, 
sheriff’s certificate of sale, and affidavit of attorney as to costs and disbursements, is re' 
corded with the Register of Deeds or the Register of Titles. The mortgagor is entitled 
to a redemption period of 12 months after date of sale. The certificate operates as a 
conveyance of the land after the expiration of the redemption period. 

—O— 


* Modal average. 


32 











Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF MISSISSIPPI 


COSTS 


Items Number 

of Cases 


Loan Amount. 100 

Attorney’s Fees. 100 

Advertising Cost. 100 

Revenue Stamps. 100 

Recording Fees. 100 


TOTAL FORECLOSURE COSTS. . 100 

Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$320,931.34 

$3,209.31 

59.5% 

3,500.00 

35.00 

33.4% 

1,966.24 

19.66 

4.3% 

251.00 

2.51 

2.8% 

164.10 

1.64 

100.0% 

1.8% 

$ 5,881.34 

$ 58.81 


—O— 


Period 


TIME TO FORECLOSE 

Number Average 

of Cases Time 


From date dispatched to State Counsel. 100 2 months, 14 days 

From date of advertisement. 100 1 month, 24 days 


—O— 


METHOD OF FORECLOSURE 

Method of foreclosure in Mississippi is by power of sale. Notice must be published 
three weeks prior to the sale date. There is no redemption period. Suit for deficiency 
judgment must be brought within one year from the date of sale. 

—O— 


33 











Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF MISSOURI 


COSTS 


Items Number 

of Cases 


Loan Amount. 99 

Advertising Cost. 99 

Revenue Stamps. 99 

Recording Fees. 99 


TOTAL FORECLOSURE COSTS*.. 
Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$343,025.57 

$3,464.90 

78.5% 

1,763.80 

17.82 

10.2% 

230.50 

2.33 

11.3% 

253.45 

2.56 

100.0% 

0.7% 

$ 2,24775** 



—O— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 99 2 months 

From date of advertisement. 99 1 month, 16 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Missouri is by court action and power of sale. Practically 
all of our cases are by power of sale. The property must be advertised twentyone days 
prior to date of sale. If the mortgagor gives a written notice at the sale or within ten 
days before the sale, he may have one year from the date of sale within which to redeem 
the property. 

—O— 

* 43 cases reporting attorney fees showed a total foreclosure cost of $1,927.70—average, $44.83; 56 cases 

cases handled by salaried personnel, reporting no attorney fees showed a total foreclosure cost of $1,431.30— 
average, $25.56. 

** Includes no attorney fees. 


34 










Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF MONTANA 

COSTS 


Items Number 

of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

86 


$239,881.69 

$2,789.32 

Attorney’s Fees. 

86 

75.63% 

10,520.00 

125.00* 

Comm, and/or Shrf’s Fees. 

86 

7.62% 

1,059.63 

12.32 

Revenue Stamps. 

86 

2.25% 

313.00 

3.64 

Court Costs. 

86 

8.94% 

1,244.04 

14.47 

Recording Fees. 

86 

0.94% 

129.50 

1.50* 

Title Search. 

86 

4.57% 

635.71 

7-39 

Administration Guardian Fees. 

Cost of Ancillary Proceedings: Pro' 

1 

0.04% 

5.00 

5.00 

bate, Guardianship, Bankruptcy, etc. 

1 

0.01% 

2.50 

2.50 

TOTAL FORECLOSURE COSTS. . 
Cost Percentage of Loan Amount. 

86 

100.0% 

5.8% 

$ 13,909.38 

$ 161.74 


—o— 

TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 86 1 year, 4 months, 19 days 

From date of petition. 86 1 year, 3 months, 2 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Montana is by court action instituted by the filing of a com' 
plaint. After a decree and order of sale is entered, the property is advertised and sold 
by the Sheriff. There is a redemption period of one year from date of sale. If the prop' 
erty is not redeemed, the purchaser is entitled to a deed at the expiration of the redemption 
period. 

—O— 


* Modal average. 


35 















Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF NEBRASKA 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

97 


$200,798.30 

$2,070.09 

Attorney’s Fees. 

97 

45.0% 

4,900.00 

50.00* 

Court Costs. 

. • 97 

47.1% 

5,125.45 

52.84 

Recording Fees. 

16 

0.2% 

21.35 

1.33 

Abstract Fee. 

95 

7.1% 

769.90 

8.10 

Costs for Releases of Judgment. 

4 

0.6% 

65.30 

16.33 

TOTAL FORECLOSURE COSTS 
Cost Percentage of Loan Amount... 

-. 97 

100.0% 

5.4% 

$ 10,882.00 

$ 112.19 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel. 97 7 months, 29 days 

From date of petition. 97 5 months, 26 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure is by court action instituted by the filing of a petition. If 
decree is entered the mortgagor may request a nine-months’ stay of execution. If this 
stay is requested, it is usually granted. When this period expires the property is adver¬ 
tised and sold by the sheriff. Sheriff’s deed vests title in the purchaser. 

—O— 


* Modal average. 


36 












Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF NEVADA 


COSTS 


Items 

Number 

Percentage 

Total 

Average 


of Cases 


Amount 

Amount 


Loan Amount. 6 

Attorney’s Fees. 6 

Comm, and/or Shrf’s Fees. 6 

Revenue Stamps. 6 

Court Costs. 6 

Recording Fees. 6 

Title Search. 6 

Cost of Ancillary Proceedings: Pro- 
bate, Guardianship, Bankruptcy, etc. 1 

TOTAL FORECLOSURE COSTS. . 6 

Cost Percentage of Loan Amount. 



$ 34,860.14 

$5,810.02 

59.8% 

800.00 

133.33 

18.3% 

244.35 

40.73 

2.8% 

37.00 

6.17 

13.2% 

176.94 

29.49 

1.3% 

17.10 

2.85 

4.4% 

60.00 

10.00 

0.2% 

2.65 

2.65 

100.0% 

3.8% 

$ 1,338.04 

$ 223.01 


—O— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 6 1 year, 8 months, 22 days 

From date of petition. 6 1 year, 3 months, 12 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Nevada is by court action instituted by the filing of a petition. 
Judgment and decree is entered directing the sale of the property by the Sheriff. Notice 
of sale must be given by advertisement for at least thirty days. The sale must be confirmed 
by the Court. There is a redemption period of one year from date of sale and deed is 
issued after the expiration of the redemption period. 

—O— 


37 













Home Owners’ Loan Corporation 


FORECLOSURE COSTS 
STATE OF NEW HAMPSHIRE 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

95 


$328,938.26 

$3,462.50 

Attorney’s Fees. 

80 

60.6% 

4,075.00 

50.00 

Auctioneer’s Fees. 

90 

7.8% 

525.00 

5.83 

Advertising Cost. 

93 

21.2% 

1,428.96 

15.37 

Revenue Stamps. 

90 

4.6% 

311.90 

3.47 

Recording Fees. 

. 93 

5.8% 

387.32 

4.16 

TOTAL FORECLOSURE COSTS. 

. 95 

100.0% 

$ 6,728.18 

$ 70.82 

Cost Percentage of Loan Amount. .. 


2.0% 




—O— 




TIME 

TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 


From date dispatched to State Counsel. 95 

1 month, 27 days 



—o— 

METHOD OF FORECLOSURE 


Method of foreclosure in New Hampshire is by power of sale. Notice of sale must 
be published once a week for three weeks and the first publication may not be less than 
twenty-one days before the day of sale. A copy of the notice must be served on the mort' 
gagor or sent by registered mail, addressed to him at his last known address. The sale 
must be held on the premises except where a different place is agreed upon in the mortgage. 
The person selling under the power of sale must, within thirty days after the sale, cause 
a copy of the notice and an affidavit of his acts to be recorded in the Registry of Deeds 
in the County wherein the property is situated. There is no redemption period after 
the sale. 

—O— 


38 











Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF NEW JERSEY 

COSTS 

Items Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

Attorney’s Fees. 

Court Costs**. 

ICO 

100* 

100 

38.0% 

62.0% 

$471,427-34 

8,455.00 

13,773.92 

$4,714.27 

84.55 

137.74 

TOTAL FORECLOSURE COSTS. . 
Cost Percentage of Loan Amount. 

100 

100.0% 

47% 

$ 22,228.92 

$ 222.29 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 

From date dispatched to State Counsel. 100 6 months, 3 days 

From date of petition. 100 4 months, 21 days 

—O— 

METHOD OF FORECLOSURE 

Foreclosure is by proceeding in Equity instituted by the filing of a bill of complaint. 
In due time a decree is entered ordering the mortgaged property sold. The property 
must be advertised four weeks prior to date of sale and the sale must be confirmed by the 
court. The officer selling the property executes a deed of conveyance to the purchaser. 
There is no redemption period unless a suit for deficiency is instituted. If the mortgagor 
does not answer, he is allowed six months from the date of entry of judgment within which 
to redeem the property. 

—O— 

* 62 cases reported Attorney's Fees in the amount of $90.00. 

37 cases reported Attorney’s Fees in the amount of $75.00. 

1 case reported Attorney’s Fees in the amount of $100.00. 

** Lump sum only is available for total court costs. (Applies to all of Region IB.) 


39 









Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF NEW MEXICO 

COSTS 


Items Number 

of Cases 


Loan Amount. 16 

Attorney’s Fees. 16 

Special Master’s Fees. 14 

Advertising Cost. 16 

Revenue Stamps. 12 

Court Costs. 14 

Recording Fees. 14 

Abstract Fees. 15 

Receiver’s Fees. 6 

TOTAL FORECLOSURE COSTS. . 16 


Cost Percentage of Loan Amount 


Percentage 

Total 

Amount 

Average 

Amount 


$ 40,488.13 

$2,530.51 

54.0% 

1,516.29 

100.00* 

7.8% 

220.00 

15.71 

11.4% 

320.11 

20.01 

1-5% 

41.00 

3.42 

6.8% 

189.55 

13.54 

0.9% 

25.50 

1.82 

12.1% 

338.65 

22.58 

5.5% 

155.00 

25.83 

100.0% 

6.9% 

$ 2,806.10 

$ 175.38 


—O— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 16 14 months, 22 days 

From date of petition. 16 13 months 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in New Mexico is by court action instituted by the filing of a 
complaint. Final decree is entered ordering the property sold by a special master. Notice 
of sale must be published for four consecutive weeks with last publication at least three 
days before date of sale. No foreclosure sale can be held until 60 days after date of decree 
within which time the mortgagee may discharge the mortgage and avoid the sale. The 
property is sold and the special master executes a deed to the purchaser. There is a 
redemption period of nine months from date of sale. 

—O— 


* Modal average. 


40 















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF NEW YORK 

COSTS 


Items Number 

of Cases 


Loan Amount. 73 

Attorney’s Fees. 73 

Auctioneer's or Trustee’s Fees. 17* 

Advertising Cost. 73 

Referee’s Fees. 73 

Revenue Stamps. 73 

Court Costs. 73 

Recording Fees. 73 

Service Fees. 73 

Title Search. 73 

TOTAL FORECLOSURE COSTS. . 73 

Cost Percentage of Loan Amount. 


Percentage 

Total 

Amount 

Average 

Amount 


$389,039.04 

$5,329.30 

40.0% 

9,125.00 

125.00 

2.0% 

460.00 

27.06 

17.5% 

4,003.78 

54.85 

29.1% 

6,632.25 

90.85 

1.3% 

287-50 

3.94 

2.3% 

524.99 

7.19 

0.7 % 

166.13 

2.28 

1.7% 

391.45 

5.36 

5.4% 

1,224.37 

16.77 

100.0% 

5.9% 

$ 22,815.47 

$ 312.54 


Period 


—o— 

TIME TO FORECLOSE 

Number Average 

of Cases Time 


From date dispatched to State Counsel. 73 5 months, 29 days 

From date of petition. 73 3 months, 17 days 

—O— 

METHOD OF FORECLOSURE 

The method of foreclosure in New York is either by court action or by sale after notice 
and advertisement, if the mortgage contains the customary power of sale. In either 
method sale is at auction and the holder of the mortgage may bid. In neither case is 
there any right to redeem after sale. Foreclosure by court action is preferable and is 
the method generally used by the Corporation. 

—O— 


* There are no auctioneers’ fees in the Upstate Districts. 
















Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF NORTH CAROLINA 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

. 99 


$437,476.72 

$4,418.96 

Attorney’s Fees. 

. 99 

55.5% 

3,520.41 

35.56 

Trustee’s Fees. 

. 63 

2.0% 

128.00 

2.03 

Advertising Cost. 

. 99 

22.5% 

1,428.18 

14.43 

Commissioner’s Fees. . . . 

. 1 

0.4% 

25.00 

25.00 

Revenue Stamps. 

. 99 

6.8% 

433.00 

4.37 

Court Costs. 

. 99 

12.8% 

808.70* 

8.17 

Recording Fees. 

. 67 

— 

193.95* 

2.89 

TOTAL FORECLOSURE COSTS . . 99 

100.0% 

$ 6,343.29 

$ 64.07 

Cost Percentage of Loan Amount. 

1-4% 




—O- 





TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 



From date dispatched to State Counsel. 99 2 months, 7 days 

From date of advertisement. 99 1 month, 16 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in North Carolina is either by court action or by power of sale; 
the latter method is almost exclusively used. Sale under a power must be advertised 
once a week for 4 weeks and notice must be given by posting at the court house door for 
30 days next preceding the sale. The trustee sells the property and the sale must be 
reported to the Clerk of the Superior Court for approval or upset bid. Trustee executes 
the deed to purchaser. There is no redemption period after the sale. 

—O— 


* Total recording costs (fees) have been added to the total court costs, assuming those cases showing no 
recording fees have included the same in the total court costs. 


42 














Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF NORTH DAKOTA 


COSTS 


Items Number 

of Cases 


Loan Amount. 99 

Attorney’s Fees. 98 

Sheriff’s Fees. 92 

Advertising Cost. 95 

Revenue Stamps. 99 

Court Costs. 97 

Recording Fees. 99 

Abstract Fees. 97 

Costs of Death Certificate and Probate 

Court Certificate. 7 

Miscellaneous Costs. 7 

TOTAL FORECLOSURE COSTS . . 99 


Cost Percentage of Loan Amount 


Percentage 

Total 

Amount 

Average 

Amount 


$275,430.17 

$2,782.12 

51.8% 

5,894.50 

60.00* 

13.3% 

1,508.85 

16.40 

13.5% 

1,532.24 

16.13 

3.0% 

344.50 

3.48 

57% 

639.34 

6.50* 

4.2% 

478.54 

4.83 

5.5% 

634.05 

6.54 

0.5% 

61.69 

8.81 

2.5% 

285.19 

40.74 

100.0% 

4-1% 

$ 11,378.90 

$ 114.94 


Period 


—O— 


TIME TO FORECLOSE 

Number Average 

of Cases Time 


From date dispatched to State Counsel. 99 1 year, 5 months, 18 days 

From date of petition. 99 1 year, 4 months, 4 days 

—O— 

METHOD OF FORECLOSURE 

Foreclosure is by court action. Notice of intention to foreclose must be served on the 
record owner and foreclosure proceedings must be commenced within 90 days thereafter 
by the filing of a complaint. Attorney must have a power of attorney to foreclose a 
mortgage, which must be recorded before the sale. After judgment is entered, the 
property is advertised and sold. The sheriff executes a certificate of sale to the purchaser, 
which is recorded. There is a redemption period of one year from date of sale, and if the 
premises are not redeemed within one year from the date of sale, the sheriff executes a 
deed to the purchaser. 

—o— 

* Modal average. 


43 
















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF OHIO 


COSTS 


Items Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

99 


$431,175.18 

$4,335.30 

Attorney’s Fees. 

98 

39.5% 

4,900.00 

50.00 

Trustee’s or Auctioneer’s Fees. 

3 

0.1% 

12.50 

4.17 

Advertising Cost. 

46 


833.56** 

18.12 

Referee or Commissioner’s Fees. 

2 

o.i% 

10.00 

5.00 

Revenue Stamps. 

99 

3.1% 

386.50 

3.90 

Court Costs. 

99 

49.6% 

6,163.04 

62.25 

Recording Fees. 

92 

1.1% 

140.18 

1.52 

Appraisal. 

28 

2.9% 

363.00 

15.00* 

Title Fee. 

34 

3.6% 

445.00 

15.00* 

TOTAL FORECLOSURE COSTS. 

99 

100.0% 

$ 12,420.22 

$ 125.46 

Cost Percentage of Loan Amount.... 


2.9% 




—O— 




TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 



From date dispatched to State Counsel. 98 4 months, 14 days 

From date of petition. 98 3 months, 24 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Ohio is by court action instituted by the filing of a petition. 
A judgment of foreclosure is entered in due course and an order of sale issues. The 
property is advertised and sold by the sheriff and the sale must be confirmed by the court. 
There is no redemption period after confirmation of sale. However, in Cuyahoga County 
the courts have taken it upon themselves to allow the mortgagor a six months’ period 
between the time petition is filed and judgment is rendered. 

—O— 


* Modal Average rather than Arithmetical Average. 

** Total advertising cost is included in total court costs. 


44 
















Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF OKLAHOMA 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

84 


$261,450.02 

$5,112.50 

Attorney’s Fees. 

. 64 

30.7% 

3,375.00 

50.00* 

Advertising Cost. 

61 

12.9% 

1,421.65 

23.31 

Commissioner’s Fees. 

1 

0.3% 

35.00 

35.00 

Revenue Stamps. 

83 

2.1% 

226.50 

2.73 

Court Costs. 

84 

11.3% 

1,249.61 

14.88 

Recording Fees. 

. . 83 

1.5% 

160.15 

1.93 

Abstract Fees. 

84 

26.0% 

2,863.85 

34.09 

Sheriff’s Fees. 

82 

10.4% 

1,139.26 

13.89 

Receiver’s Fees. 

28 

4.8% 

530.27 

18.94 

TOTAL FORECLOSURE COSTS 

** 

100.0% 

** 

** 

Cost Percentage of Loan Amount... 


4.2% 




—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel .84 11 months, 19 days 

From date of petition. 84 9 months, 20 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Oklahoma is by court action instituted by the filing of a 
petition. After judgment is entered the property must be appraised, unless waived by 
the mortgage, and may not be sold for less than 2/3 of the appraised value. Where 
appraisal is waived, as in HOLC mortgage, the property may not be sold until six months 
after date of judgment. Notice of sale must be published for 30 days prior to date of 
sale, and the sale must be confirmed by the court. Sheriff executes a deed to the pur' 
chaser. There is no redemption period after date of sale. 

—O— 

* Modal average. 

** 64 cases using fee attorneys reported a total foreclosure cost of $8,955.20; average $139.93. 20 cases not 
using fee attorneys reported a total foreclosure cost of $2,046.09; average, $102.30. Grand total, $11,001.29; 
average, $130.97. 


45 


















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 


STATE OF OREGON 

COSTS 

Items Number Percentage 

of Cases 

Total 

Amount 

Average 

Amount 

Loan Amount. 

100 


$280,924.61 

$2,809.25 

Attorney’s Fees. 

100 

56.5% 

7,370.00 

73.70 

Comm, and/or Shrf’s Fees. 

100 

9.7% 

1,259.91 

12.60 

Revenue Stamps. 

100 

2.6% 

341.50 

3.42 

Court Costs. 

100 

16.2% 

2,107.46 

21.07 

Recording Fees. 

100 

1.5% 

201.35 

1.90* 

Title Search. 

100 

12.0% 

1,561.00 

15.00* 

Adm. & Guardian Fees. 

4 

0.3% 

40.00 

10.00 

Cost, of Ancillary Proceedings: Pro' 





bate, Guardianship, Bankruptcy, etc. 

7 

1.2% 

155.80 

22.26 

TOTAL FORECLOSURE COSTS. . 

100 

100.0% 

$ 13,037.02 

$ 130.37 

Cost Percentage of Loan Amount.... 


4.6% 




— o— 




TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 



From date dispatch to State Counsel. . 100 1 year, 5 months 

From date of petition. 100 1 year, 3 months, 10 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Oregon is by court action instituted by the filing of a com' 
plaint. Decree is entered and the property is advertised and sold by the Sheriff. The 
sale may not be confirmed for at least ten days. There is a redemption period of one year 
from date of sale, and deed is issued after expiration of the redemption period. 

—O— 


* Modal average. 


46 














Home Owners' Loan Corporation 


FORECLOSURE COSTS 
STATE OF PENNSYLVANIA 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

.. 99 


$429,805.89 

$4,341.47 

Attorney’s Fees. 

. 99 

31.8% 

4,977.50 

50.00* 

Advertising Cost. 

. . 99 

41.5% 

6,504.21 

65.70 

Revenue Stamps. 

64 

0.4% 

57.30 

.90 

Court Costs. 

. . 99 

21.7% 

3,396.96** 

34.31 

Recording Fees. 

10 

0.4% 

57.00 

5.70 

Sheriff’s Poundage. 

.. 87 

4.2% 

675.84 

7-77 

TOTAL FORECLOSURE COSTS 
Cost Percentage of Loan Amount. . 

.. 99 

100.0% 

3.6% 

$ 15,668.81 

$ 158.27 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 99 2 months, 6 days 

From date of petition. 99 1 month, 19 days 


METHOD OF FORECLOSURE 

Method of foreclosure in Pennsylvania is either (1) by a writ of Scire Facias Sur mortgage, 
or (2) by entering judgment on the bond. (1). Scire Facias may not issue until one year 
after default, unless this condition is expressly waived. Judgment is entered on the Scire 
Facias and the property sold on execution. (2) The other method is to enter judgment on 
the bond, which is usually accompanied by a warrant to confess judgment, and to sell the 
property in execution of this judgment, which becomes a lien as of the date upon which the 
mortgage was recorded. There is no redemption from a foreclosure sale. 

—O— 


* Modal average. 

** Includes recording fees, except for 10 cases listed under Recording Fees. 


47 












Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF RHODE ISLAND 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

98 


$534,307.41 

$5,452.12 

Auctioneer’s Fees. 

98 

23.0% 

1,006.93 

10.27 

Advertising Cost. 

• ■ 97 

56.4% 

2,469.62 

25.46 

Revenue Stamps. 

72 

9.9% 

432.75 

6.01 

Recording Fees. 

.. 80 

10.7% 

472.65 

5.91 

TOTAL FORECLOSURE COSTS. 
Cost Percentage of Loan Amount. . . 

. 98 

100.0% 

0.8% 

$ 4,381.95 

$ 44.72 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 98 2 months, 10 days 


—O— 


METHOD OF FORECLOSURE 

Method of foreclosure in Rhode Island is generally by power of sale. Publication must 
be made once a week for three weeks, and the first publication must be at least twenty one 
days prior to the date of sale. The property is sold by an auctioneer, and the foreclosure 
deed is executed and recorded. There is no redemption period after date of sale. 


48 









Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF SOUTH CAROLINA 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

98 


$255,989.49 

$2,612.14 

Attorney’s Fees. 

98 

50.0% 

6,043.34* 

61.67 

Auctioneer’s Fees. 

81 

1.2% 

143.00 

1.57 

Advertising Cost. 

97 

14.0% 

1,690.12 

17.42 

Commissioner’s Fees. 

98 

20.2% 

2,438.69 

24.88 

Court Costs. 

98 

10.0% 

1,206.73 

12.31 

Recording Fees. 

96 

1.1% 

128.25 

1.34 

Sheriff’s Cost. 

Administrator ad litem, Guardian 

93 

ad 

3.3% 

393.81 

4.23 

litem. 

6 

0.2% 

35.00 

5.83 

TOTAL FORECLOSURE COSTS 
Cost Percentage of Loan Amount. . 

. . 98 

100.0% 

4.7% 

$ 12,078.94 

$ 123.25 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 98 3 months, 26 days 

From date of petition. 98 2 months, 28 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in South Carolina is by court action instituted by the filing of a 
complaint. The case is referred to a Master in Equity who hears the case. Decree of 
foreclosure is signed by the Court and sale is ordered. The property is advertised and 
the sale held by Master in Equity. The bidding remains open for thirty days for upset 
bids, but the bidder at the sale may neither directly nor indirectly raise his bid during this 
period. Deed is executed to the purchaser. There is no redemption period after fore' 
closure sale. 

—O— 


* $123.34 was added to the total attorney fees and total foreclosure costs to compensate for cases reporting 
no attorney fees, said cases having been handled by salaried personnel. 


49 














Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF SOUTH DAKOTA 

COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

.. 100 


$225,122.58 

$2,251.23 

Attorney’s Fees. 

. . 100 

45.5% 

3,220.00 

25.00* 

Recording Fees (Certificate of Sale). 

.. 88 

1 . 3 % 

94.15 

1.07 

Sale Costs. 

. . 100 

43.4% 

3,077.27 

30.77 

Abstract Fees. 

13 

0.7% 

49.90 

3.84 

Recording Fees (Deed). 

.. 99 

9-1% 

642.40 

6.49 

TOTAL FORECLOSURE COSTS. 

. 100 

100.0% 

$ 7,083.72 

$ 70.84 

Cost Percentage of Loan Amount. . . 

• 

3.1% 




—O— 




TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 



From date dispatched to State Counsel 99 1 year, 2 months, 5 days 

From date of advertisement. 100 1 year, 1 month, 25 days 


—O— 

METHOD OF FORECLOSURE 

Foreclosure in South Dakota may be either (1) by court action, or (2) by advertisement 
under power of sale. (1). Foreclosure by court action is instituted by the filing of a com- 
plaint. After judgment and order of sale, the property is advertised once a week for 30 
days and sold by the sheriff or referee. Certificate of sale issues to the purchaser and must 
be recorded. There is a one-year redemption period from date of sale, and if there is no 
redemption deed is issued to the purchaser. (2). To foreclose by advertisement, notice 
of foreclosure must be given by publication once a week for four weeks. Sale must be 
made by the sheriff, and certificate of sale is issued to the purchaser and recorded. There 
is a redemption period of one year from date of sale, and if there is no redemption deed 
issues to the purchaser. 

—O— 

* Modal average. 


50 










Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF TENNESSEE 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

.. 98 


$323,179.75 

$3,29775 

Attorney’s Fees. 

98 

64.5% 

4,900.00 

50.00 

Advertising Cost. 

. . 98 

28.4% 

2,154.07 

21.98 

Revenue Stamps. 

.. 98 

3.6% 

275.50 

2.81 

Recording Fees. 

.. 98 

3.3% 

254.35 

2.60 

State Tax 6? Clerk’s Fee. 

1 

0.2% 

11.65 

11.65 

TOTAL FORECLOSURE COSTS 
Cost Percentage of Loan Amount.. . 

.. 98 

100.0% 

2-4% 

7,595.57 

$ 77.51 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 98 1 month, 28 days 

From date of advertisement. 98 1 month, 11 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Tennessee is by power of sale contained in the deed of trust. 
Publication of notice of foreclosure must be made at least twenty days before the date of 
sale and must appear at least three times in some newspaper published in the county where 
the sale is to be made. Deed is executed by the trustee to the purchaser. Sale without 
advertisement is not void, the provision for advertisement being merely discretionary. 
A redemption period of one year is permitted, unless waived. The redemption period is 
waived in HOLC deeds of trust. 


51 











Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF TEXAS 


COSTS 


Items 

Number 

Percentage 

Total 

Average 


of Cases 


Amount 

Amount 


Loan Amount. 93 

Revenue Stamps. 93 

Recording Fees. 93 


TOTAL FORECLOSURE COSTS. . 93 

Cost Percentage of Loan Amount. . .. 



$223,836.74 

$2,406.85 

34.8% 

167.50 

1.80 

65.2% 

314.30 

3.38 

100.0% 

$ 481.80 

$ 5.18 

0.2% 




—O— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel 93 1 month, 10 days 

From date of petition or advertisement 93 21.9 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Texas is either (1) by court action, or (2) by power of sale. 
(1). Foreclosure by court action is instituted by the filing of a petition. Judgment is 
entered and an abstract of judgment is recorded. The judgment becomes final after 30 
days and an order of sale issues to the sheriff. Notice of sale must be published once a 
week for four weeks. The sheriff sells to the highest bidder at the sale and executes a deed 
to the purchaser. (2). Foreclosure by trustee’s sale under power of sale in the deed of 
trust is effected by advertising the property by posting for 21 consecutive days prior to 
date of sale at three public places in the county. The trustee conducts the sale, selling 
to the highest bidder, and executes a deed to the purchaser. There is no redemption period 
after date of sale in either method. 


52 







Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF UTAH 

COSTS 

Items Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

100 


$321,751.15 

$3,217.51 

Attorney’s Fees. 

100 

66.2% 

10,485.00 

104.85 

Comm, and/or Shrf’s Fees. 

100 

12.8% 

2,031.88 

20.32 

Revenue Stamps. 

100 

2.6% 

406.50 

4.07 

Court Costs. 

100 

12.7% 

2,009.72 

20.10 

Recording Fees. 

100 

1.4% 

216.50 

2.17 

Title Search. 

100 

3.9% 

622.04 

6.22 

Cost of Ancillary Proceedings: Pro 





bate, Guardianship, Bankruptcy, etc. 

4 

0.4% 

60.95 

15.24 

TOTAL FORECLOSURE COSTS. . 

100 

100.0% 

$15,832.59 

$ 158.33 

Cost Percentage of Loan Amount. . . . 


4.9% 




—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 100 1 year, 5 months, 1 day 

From date of petition. 100 1 year, 2 months, 23 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Utah is by court action instituted by the filing of a complaint. 
Judgment is entered and the Sheriff is directed to proceed and sell the property. Notice 
must be given for twenty days by posting in three public places, and publishing once a 
week for the same period. The Sheriff sells the property and issues a certificate of sale to 
the purchaser. There is a redemption period of six months from date of sale. If there 
is no redemption, the purchaser is entitled to a deed at the end of the redemption period. 


53 












Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF VERMONT 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount. 

42 


$187,397.12 

$4,461.84 

Attorney’s Fees. 

42 

64.4% 

2,626.80 

65.00* 

Court Costs. 

. 42 

35.6% 

1,453.02 

34.59 

TOTAL FORECLOSURE COSTS 
Cost Percentage of Loan Amount. . . 

.. 42 

100.0% 

2.2% 

$ 4,079.82 

$ 97.14 


—o— 

TIME TO FORECLOSE 


Period 


Number Average 

of Cases Time 


From date dispatched to State Counsel. 35 9 months, 9 days 

From date of petition. 32 8 months, 27 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Vermont is by suit in chancery. The proceeding is one of 
strict foreclosure. The period of redemption is one year, but the Chancellor may shorten 
this period if the security is insufficient. Title passes to the mortgagee if the property 
is not redeemed within the time fixed by the decree. 

—O— 


* Modal average. 


54 








Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF VIRGINIA 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount . 

. . 100 


$551,262.83 

$5,512.63 

Attorney’s Fees. 

. 100 

42.3% 

4,000.00 

40.00 

Trustee’s Fees. 

99 

10.3% 

977.50 

10.00* 

Advertising Cost. 

. . 100 

33.0% 

3,120.79 

31.21 

Sheriff’s Fees. 

. . 100 

3.8% 

358.00 

3.50* 

Revenue Stamps. 

.. 100 

4.8% 

457.00 

4.57 

Court Costs . 

2 

0.1% 

1.00 

.50 

Recording Fees . 

. . 100 

5.4% 

509.42 

5.09 

Mileage . 

2 

0.2% 

20.00 

10.00 

Cost of Hand Bills . 

1 

0.1% 

4.00 

4.00 

TOTAL FORECLOSURE COSTS 

.. 100 

100.0% 

$ 9,447.71 

$ 94.48 

Cost Percentage of Loan Amount. . . 

• 

1.7% 




—o— 




TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 100 20 days 

From date of advertisement. 100 8 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Virginia is by power of sale under deed of trust. Deed of 
trust may be foreclosed in equity, but application should be made to the court only when 
its aid is necessary. HOLC deed of trust provides that the trustee shall advertise the 
property by placing “A notice of time, place, and terms of sale for 5 times in some news' 
paper published in or having a general circulation in the county wherein the property 
lies.” The sale must be at public auction and deed is executed by the trustee to the pur' 
chaser. When the deed is recorded it must be noted by the Clerk on the margin of the 
record of the encumbrance. Trustee must make a report to the Commissioner of Accounts. 
There is no redemption period after sale. 


* Modal average. 


55 















Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF WASHINGTON 

COSTS 


Items Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

100 


$250,640.79 

$2,506.41 

Attorney’s Fees. 

100 

55.1% 

7,407.50 

74.08 

Comm, and/or Shrf’s Fees. 

100 

17.1% 

2,295.95 

22.96 

Revenue Stamps. 

100 

2.4% 

327.50 

3.28 

Court Costs. 

100 

16.9% 

2,270.35 

22.70 

Recording Fees. 

100 

U% 

152.15 

1.50* 

Title Search. 

96 

7.1% 

957.25 

10.00* 

Adm. and Guardian’s Fees. 

Cost of Ancillary Proceedings: Probate, 

1 

0.1% 

10.00 

10.00 

Guardianship, Bankruptcy, etc. 

2 

0.2% 

18.95 

9.48 

TOTAL FORECLOSURE COSTS.. 

100 

100.0% 

$ 13,439.65 

$ 134.40 

Cost Percentage of Loan Amount.... 

—o— 

5.4% 



TIME TO FORECLOSE 



Period 

Number 


Average 



of Cases 


Time 



From date dispatched to State Counsel 100 1 year, 5 months, 23 days 

From date of petition. 100 1 year, 4 months, 6 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Washington is by court action instituted by the filing of a 
complaint. Decree and order of sale is entered and notice of sale is given by posting 
in three public places for four weeks prior to sale and by publishing once a week for the 
same period. Property is sold at public auction by the sheriff and the sale may be con' 
firmed by the Court at any time after ten days from the date thereof. There is a redemp' 
tion period of one year from date of sale. If the property is not redeemed the sheriff 
executes and delivers deed to the purchaser. 


* Modal average. 


56 














Home Owners’ Loan Corporation 


FORECLOSURE COSTS 
STATE OF WEST VIRGINIA 


COSTS 


Items 

Number 
of Cases 

Percentage 

Total 

Amount 

Average 

Amount 

Loan Amount . 

. . 100 


$475,120.45 

$4,751.20 

Trustee’s Fees. 

90 

46.7% 

2,660.00 

30.00 

Advertising Cost. 

. . 100 

39.8% 

2,268.00 

22.68 

Revenue Stamps. 

. . 100 

6.1% 

343.00 

3.43 

Court Costs . 

96 

2.6% 

148.50 

1.55 

Recording Fees . 

. . 100 

4.8% 

273.25 

2.7 5* 

TOTAL FORECLOSURE COSTS 
Cost Percentage of Loan Amount . . . 

.. 100 

o 

8 ^ 
r-H 

$ 5,692.75 

$ 56.93 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 100 1 month, 25 days 

From date of advertisement. 100 1 month, 6 days 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure is by power of sale. Notice of sale must be published at least 
once a week for four successive weeks, and a copy of such notice must be posted at the front 
door of the court house for a like period. Notice must also be served on the grantor, 
if within the county, at least 20 days before sale. There is no right to redemption after 
foreclosure sale under deed of trust. 


* Modal average rather than arithmetical average. 


57 











Home Owners’ Loan Corporation 


FORECLOSURE COSTS 

STATE OF WISCONSIN 


Items 


COSTS 

Number Percentage Total Average 

of Cases Amount Amount 


Loan Amount. 

73 


$406,566.73 

$5,569.41 

Attorney’s Fees. 

73 

52.7% 

6,540.00 

89.59 

Revenue Stamps. 

73 

2.9% 

360.00 

4.93 

Court Costs. 

73 

33.3% 

4,124.41 

56.50 

Recording Fees. 

1 

0.0% 

1.40 

1.40 

Abstract Charges. 

66 

10.2% 

1,262.04 

19.12 

Photo of Note 6? Mtge. 

11 

0.5% 

67.80 

6.16 

Expert Testimony (Appr.). 

1 

0.4% 

50.00 

50.00 

TOTAL FORECLOSURE COSTS.. 
Cost Percentage of Loan Amount. . . . 

73 

100.0% 

3.1% 

$ 12,405.65 

$ 169.94 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 73 17 months 

From date of petition. 73 16 months 

—O— 

METHOD OF FORECLOSURE 

Foreclosure in Wisconsin is by court action instituted by the filing of a complaint. 
In |due course a judgment of foreclosure and sale is entered ordering the mortgaged premises 
sold. However, sale cannot be held until one year after the date of entry of judgment. 
Notice of the time and place of holding the sale must be given by publication once a week 
in a newspaper of the County where the property is situated and posting a copy of said 
notice in three public places in the town where the real estate is sold. The sale must be 
confirmed by the court and a deficiency judgment may be demanded if property did not 
realize enough to satisfy the debt. After the sale has been confirmed the sheriff’s or ref' 
eree’s deed passes the title of the mortgagor to the purchaser without any right of re' 
demption. 

—O— 

Note: Publication for Sale, Sheriffs’ Fees and Recording Fees are included in Court Costs. 


58 













Home Owners' Loan Corporation 


FORECLOSURE COSTS 

STATE OF WYOMING 


Items 


COSTS 

Number Percentage Total 

of Cases Amount 


Average 

Amount 


Loan Amount. 

16 


$ 38.772.09 

$2,423.26 

Attorney’s Fees. 

16 

61.7% 

1,720.00 

107.50 

Comm, and/or Shrf’s Fees. 

16 

23.9% 

666.53 

41.66 

Revenue Stamps. 

16 

1.8% 

49.50 

3.09 

Court Costs. 

8 

3-1% 

87.30 

10.91 

Recording Fees. 

16 

1-2% 

32.55 

2.03 

Title Search. 

Cost of Ancillary Proceedings: Pro- 

15 

7.9% 

219.93 

14.66 

bate, Guardianship, Bankruptcy, etc. 

1 

0.4% 

10.00 

10.00 

TOTAL FORECLOSURE COSTS.. 
Cost Percentage of Loan Amount.... 

16 

100.0% 

7.2% 

$ 2,785.81 

$ 174.11 


—o— 


TIME TO FORECLOSE 

Period Number Average 

of Cases Time 


From date dispatched to State Counsel 16 1 year, 4 months, 27 days 

From date of petition or advertisement 16 1 year, 3 months, 1 day 

—O— 

METHOD OF FORECLOSURE 

Method of foreclosure in Wyoming is either by court action or by power of sale. 
In the latter method advertisment must be once a week for four weeks. Foreclosure by 
court action is instituted by the filing of a complaint. After judgment is entered sale is 
ordered. The property is advertised for sale once a week for four weeks and the sale is 
by public auction. Certificate of sale is executed by the sheriff and given to the purchaser. 
The debtor is entitled to a six months’ redemption period, and judgment creditors to nine 
months’. If there is no redemption, deed is issued after the expiration of the redemption 
period. 























































































































































